Archive for the ‘Home Insurance’ Category

Home Insurance Quotes: Check Also Issuers and Coverage

Monday, December 14th, 2009

After researching home insurance quotes, check also the insurance firms offering the quotes and the coverage being offered.

Make sure you get the lowest quotes from among insurance companies that have track records in responding to claims promptly and that have been operating successfully over the past several years. See to it also that you are comparing quotes for the same type of coverage. A certain quote from a particular company might be lower because it pays only a fixed amount or reduced amount while the higher quote pays the amount needed to replace a destroyed house.

To ascertain whether an insurance firm is stable, call the Department of Insurance in your state at 1-866-470-NAIC and ask for information.

You may also want to compare only quotes from insurance companies that are being cited in consumer surveys. In the most recent insurance industry survey conducted by J.D. Power, the top issuers of house insurance based on customer satisfaction were Amica Mutual, Erie Insurance, Auto-Owners and State Farm.

You can also try others cited in the survey such as Alfa, Hartford Insurance, Farmers, Nationwide, Allstate, Cincinnati Insurance and Automobile Club of Southern California.

In many websites that provide home insurance quotes, these insurance companies are also cited – GMAC, Unitrin, Liberty Mutual and American Family Insurance – in addition to the previously-mentioned insurance firms.

You can also choose insurance quotes from among issuers that topped in 2008 based on direct premiums written, as compiled by the National Association of Insurance Commissioners. They were State Farm, Allstate, Zurich, Liberty Mutual, Travelers, Nationwide, USAA, Chubb & Son, American Family and Hartford Fire.

After getting insurance quotes within your budget from one or more of these companies, then you can go and compare the perils covered and the claims accepted. Make sure that property damages from fire, lightning, hail, wind, water, freezing and theft are covered and that your liabilities for property damage, bodily injuries and medical costs are also included.

In 2007, according to the Insurance Services Office, around 95 percent of house insurance claims involved property damage and theft, so make sure you are properly covered against these and against the most common perils in your state.

After researching home insurance quotes to help you purchase your best policy, consider obtaining a policy that protect against perils like earthquake, flood or hurricane which are not usually covered by standard house insurance policies.

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Home Insurance Secrets You Might Not Know Yet but Should

Thursday, December 3rd, 2009

There are things about home insurance that you might not know yet but should. Home insurers do not want these things known because they will prompt complaints and stir possible investigations by insurance regulators.

But insiders who have seen these things and customers who have experienced them have revealed them to other people. Now it is your turn to know them.

Among their secrets are the ways they do to lessen their chances of paying out insurance claims. Without being upfront about them, some insurance firms do discriminate against certain people, refusing to issue policies when their insurance risk is higher.

According to findings by the Consumer Federation of America, some insurers have been instructing their agents not to sell to couples with marriage problems, older people with companions and residents of certain zip codes.

The house insurance policies of people who slightly increase their risks due to certain actions are also not renewed by some insurers, such as customers who make dog bite claims, who start a home-based business or who miss one or two credit card payments.

Worse, once a customer is dropped by one home insurance firm, the other insurers need lots of convincing before issuing a policy. Some others flatly refuse to issue a policy. Independent insurance agent Michael Grace said that insurance firms are purely business; they believe that some people are simply prone to insurance claims.

Insurance firms also use Comprehensive Loss Underwriting Exchange reports to look for past claim patterns. This service was launched to prevent fraud in the insurance industry, but it is now being used by insurers against persons who have filed legitimate insurance claims in previous years.

Former Massachusetts Insurance Commissioner Linda Ruthardt said that once insurers see a claims record in the CLUE report, many of them refuse to issue a policy even if the past claim was legitimate.

Policyholders have been asking their agents about the limits of small claims that they can file before they are branded as risky clients, but insurers do not give definite replies. Independent agent Ron Sundermann said that the policy of his client was not renewed by his insurance firm after the client made four small claims over a three-year period.

These are just some of the practices by insurance companies that you need to know. Be informed so you can get the best home insurance policy from the best company.

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Home Insurance Company Crisis Must be Averted, Aon Says

Friday, November 13th, 2009

A home insurance company crisis can happen in the U.S. within the next ten years if insurers are not allowed to charge higher rates that enable them to operate at profitable levels, according to a study conducted by Aon Benfield, a reinsurance brokerage owned by Chicago-based Aon.

The study showed that the projected return on investment this year dropped by 0.4 percent, making house insurance a losing option for investors. Aon Benfield said that the ROE for house insurance products dropped to 6.1 percent in August 2009 from 6.5 percent in August last year.

Aon Benfield said that if insurance firms cannot show reasonable ROE levels for the home insurance line, private capital investors who have been pouring their money into the home insurance market will withdraw and look for more profitable insurance product lines.

According to Aon, this low ROE level has forced many home insurance companies to leave some states and to stop issuing certain riskier home insurance products. As a result, the study added, state governments have been taking over, issuing insurance policies in insurance lines and in geographical areas where home insurance company enterprises refuse to sell house insurance policies.

As states often cannot afford to sustain increasing insurance liabilities, they eventually turn for financial assistance from the federal government.

Bryon Ehrhart, CEO of Aon Benfield, further explained that it is surprising that state governments continue to block insurance companies from rising from their huge losses during the catastrophe years and replenish the huge capital they have lost.

The report, however, recognized that home insurance companies in some states are operating profitably, but in other states, insurers have been struggling.

Prospective rates of return in Washington, D.C. and in four states are more than 10 percent, while the ROE in states like California, Massachusetts and Mississippi was lower than 2.5 percent.

Aon Benfield estimated that home insurers need to increase their rates by over 26 percent so they can realize a 14-percent rate of return. In hurricane-prone Florida, rates need to increase by nearly 94 percent while in North Carolina, an increase of nearly 2 percent is adequate.

Along the Gulf Coast and the East Coast which are prone to hurricanes, rates need to increase by around 36 percent to realize a 14-percent ROE. For the remaining regions, rates need to rise by more than 15 percent to enable home insurance company enterprises to realize a 14-percent rate of return.

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Determining If House Insurance Quotes are Reasonable

Thursday, October 22nd, 2009

Since homeowners cannot predict accidents or disasters, taking out a home insurance policy is considered to be a priority. Of course, you will have to obtain several house insurance quotes from different carriers so that you can enjoy savings as well. There are numerous factors that you will have to consider when determining if the […]

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Changes in Florida Home Insurance Building Policies

Wednesday, October 21st, 2009

Residents living in Hernando and Pasco County, Tampa Bay will no longer be able to enjoy sinkhole coverage included in their home insurance building policy beginning January 1. It is therefore not surprising that home inspectors are receiving numerous requests from homeowners who wanted their homes tested for any signs of sinkhole activities. Of course, […]

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Asking Company Insurance Regarding Flood Protection

Thursday, October 15th, 2009

As a homeowner, one of the first things you do is to purchase protection from a reputable company insurance. But most of the time, the agent or representative fails to inform you that your coverage does not include damages or loss resulting from flood. This, of course, leaves you at a loss when such catastrophe […]

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Update on Leading Florida Companies of Insurance

Tuesday, October 13th, 2009

Three Florida companies of insurance are in the center stage due to particular decisions and plans that involve thousands of their policy holders. First is the decision of Nationwide Insurance Company of Florida to no longer renew approximately 60,000 of its policies. The said decision is part of the plan of the insurance carrier to […]

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How to Avail of the Best Insurance Quote

Thursday, October 8th, 2009

Before you settle for insurance, make sure that you have done your best in looking for the best insurance quote for your house. Best means that it has value that is worth your house. You might get an insurance cost that is way below your expected, but you also have to make sure that the […]

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Home Insurance Companies Raise Their Rates in Two States

Wednesday, October 7th, 2009

Some of the largest home insurance companies in Alabama and in Oregon are increasing their rates this year because of bigger amounts of claims, higher construction costs and declines in the values of their insurance investments. In Alabama, three of the biggest home insurers have received approval from state regulators to increase their rates. These […]

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House Insurance in NY Chosen with Help from Insurance Dept

Monday, September 28th, 2009

Buying house insurance in NY will result in a productive activity if you first visit the web site of the New York Insurance Department. The New York web site is among the best insurance department web sites in terms of helpful information and ease of navigation. You can read about the things you need to […]

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